they're leading the gains. some of the biggest individual movers are costco, paypal, express scripts, insight topping the nasdaq 100 goldman sachs the real standout in the dow followed by united tech, united health, intel, and the airlines they are flying high as well. >> yep if something happens between the next hour, it's "closing bell's" fault. thanks for watching "power lunch. ♪ 24k magic in the air welcome to "the closing bell," everybody, i'm kelly evans at the new york stock exchange. >> i'm bill griffeth we're rocking n rolling today. in case you haven't heard, the dow's best day of 2017, the average hitting 24,000 for the first time ever, moving well beyond that number today at our peak, up 387 points we're up right now obviously stocks started off strong, but tax reform hopes and promises of a yes vote from senator john mccain that's really what sent us into

a next -- the next gear. >> yeah, if you went out for lunch, like -- came back and checked the market, you went, what the heck happened >> yes. >> ooershere's a look at our se heat map energy dealing well, had of course the opec extension, industrials, financials, goldman the best performer in the dow. those are all the big winners.ug the ten year yield is creeping up a little bit today. real estate also in the red. coming up, we'll go to washington for an exclusive interview with senator chuck grassley about tax reform. >> chairman of the senate judiciary committee. the dow's rise, 24,000, has been rapid compared to other big milestones a few of the signature trader hats for each milestone on set with us here courtesy of our friend, the trader peter tuchman, one of the most famous traders on the floor, looks like albert aeinstein

>> if we can zoom out for a second, so we crossed 20,000 january, we crossed 21,000 on march 1st. that day was sort of reminisce soent of today crossed 22,000 in august crossed 23,000 on october 18th if we close here, cross above 24,000, close there on november 30th real quickly, by the way, never in the history of this stock market have we had more than 2,000 point thresholds crossed in one calendar year we may have five if we close there today. >> yeah. and where do we go next? peter's hedging his bets right now. >> he just -- >> it's getting expensive to make so many hats in one year so he's -- this is good for a little while i think >> hopefully. >> we will see. >> anyway, it took just 309 days for the dow to rise those 4,000 points from the 20,000 level, which it did hit on january 25th, to 24,000 today. the previous 4,000 points from 16,000 to 20,000 took almost

four times as long going all the way back to 2013 this will with on ton the midtem better write this down the dow hit 23,000 for the first time just last month in october and it took only 43 days to hit 24,000 so what's behind this quick move to 24k bob pisani joins us down on the floor to break it down for us. bob? >> it's not tech, it's a will diversified group. it's all about high-priced stocks remember the dow is price weighted you get a stock like united health care, $227 stock. look, it's up $5 today that's almost 40 points in the dow jones industrial average come over here, boeing, highest priced stock in the dow, it's up $5 another 40 points. 80 points just in two stocks moving the dow that's just today. we craossed intraday the dow jones industrial average 23,000. that was september 17th. that was the intraday close for that we had a nice move up.

since then 1,000 points as you can see. the dow's, remember, highest-priced stock look at the five highest priced stocks in the dow. boeing, goldman sachs, 3, manm, united health care, home depot goldman is in there as well, made the biggest contribution for the dow in that 1,000 points since september 17th you can take a look here, it's all the high-priced stob ed stos 3m moved 147 points, united health grew, home depot, walmart, then you got boeing in there as well. apple has moved. the only thing that's not in the group, highest price, is goldman sachs which really hasn't done too much these six are over 60% of the dow move the good news, it's well diversified. see health care and industrials, retail, technology, that's why the market keeps going up here diversif diversified. what's the detractors? we've had stocks that have negatively impacted the dow. these tend to be the lower priced stocks. general electric below $20, that's a cheap stock overall see it's at had a terrible

quarter. it's ochbnly impacted the dow 3 points merck, 55 on the downside, procter & gamble, only 24. i think you get the point. finally i want to take a point about tax cuts lot of people debate tax cuts influence the market take a look at the dow there s&p 500 moved 15 points when senator mccain announced he was supporting, and there's the circle right there, he was supporting the tax reform bill that was at 10,055 people who say there's no impact, they're not reading the markets right. definitely some kind of premium. i guess, guys, the question now is, how much of a premium really is left for tax reform back to you. >> bob, thank you, bob pisani. earl eaier today on the halftim report, it was asked how much of this rally should be attributed to moves in washington here's what he had to say. >> i must admit, you know, i really thought trump was, you know, going to really change the landscape and he certainly has

gone far to do that. i'm not that involved with washington, as you know, but i am -- i have to say -- surprised the euphoria even though earnings are going to be very good, even -- and what have you, i just think this thing has got into a euphoric state. >> sounds like a warning joining our "closing bell" exchange to discuss all this, hank smith from haverford trust, jonathan here on post 9 with us from her rmeridian equity partns rick santelli checking in from the cme in chicago jonathan, we talked a lot about the euphoria in bitcoin and so forth, and even today the move is moderated a bit as we head into the close is it euphoria you see playing out in the stocks here >> i think it is we continually have this same conversation some of it sals we've become very immune to these milestones we keep hitting in this market and sometimes we expect this continue to happen i think if that expectation tie

that with euphoria, there could be a little bit of warning signs that are coming ahead. we like to see the market moves up and down. right, it's health fy for the market to do it. there are headlines that could have acted as a catalyst to the downside, north korea, government shutdowns we haven't seen that self-pressure yet. >> we keep having this conversation but at higher and higher levels. >> correct the numbers keep changing. hank, so if we believe tax reform is a big part of this, what's the next catalyst i mean, you know, the market's been waiting all year for this tax bill, it looks like it's going to pass but now what >> well, bill, first of all, let's put this market into perspective, it is paying attention to what is important economic growth is accelerating in the united states and around the globe, corporate profits are accelerating interest rates remain low. and inflation is benign. this is what is important to the market it's ignoring what really isn't

important, the geopolitical events whether it's north korea, russia, a terrorist attacks, storms and natural disasters it's ignoring all of that. and the market, on a forward multiple, isn't that much more expensive today than it was a year ago so it's earnings that's driving this market. we are not in euphoria yet. >> the other thing, too, john than, you have to look across the other averages and don't see as much -- reminds us how much we do look at the dow which is up more than 1% today. the russell is barely positive the s&p is up middling 16 points the nasdaq is up half a percent. >> right, that's something we have to keep in sp er perspective, a broader average what's happening in many different sectors and overall economy. yes, we do focus on the dow. i think investors need to continually focus on the russell and s&p. >> and rick, i guess it's simplistic to say they're buying stocks and selling bonds or selling bonds to buy those stocks but the ten-year yield is up to

242 today. and the dollar index just continues lower again. what do you make of everything here >> yeah, i think the dollar index is the odd man out and i would continue to have a little worry in that regard. but of course, many believe that multinationals would be more benefited in this area i'm not so sure that it's worth the softness in the dollar as for interest rates, you know, yes, we seem to have tried to get close to unchanged on the year, 244.50, didn't quite make it, since the high yield in march of 263, we've only closed above where we said last year just about middle of october, one time, 246. i think interest rates are going to pay more attention to the rally there the stock market and the economy. i do think they're going to climb a little bit here as we finish out 2017. you know, i just don't agree with carl icahn. sure, there's a little exuberance in the marketplace, i like kelly's point if you don't

just look at the dow, you get a little different flavor of what's going on. i think it's the deconstruction of the nanny state it's the anti-establishment threat, whether it's brexit or trump. i think carl's right, maybe not a lot has gotten done yet. i think that in the end, the global economy is going to be much better off for all these issues i think it continues >> hank, where would you go right now for investors? i mean, if you want to get tactical about it, what is your best advice here >> well, look, i would stay in a balanced approach in terms of having some money in the defensive sectors, like staples and health care, but also in the more cyclical sectors. such as industrials, financials, basic material i wouldn't really skew in one direction or another we're very, very underweighted in utilities and reits and don't think the value is there so, look, i think at this point you

stay diversified don't get too concentrated in any one sector the nice thing about this advance this year is it's been relatively broad based yes, technology has led the charge, but 7 out of the 11 sectors are posting double-digit gains. it's very broad based. >> what about you, john, where do you see opportunity, very quickly? >> i think financials. clearly continue talk about interest rates, how that's going to affect our economy. we've seen that upward momentum there. that's an area to continue to look at. >> all right, gentlemen, we'll no doubt have this conversation again. i wonder where the levels will be then. we'll see. john, hank, rick, thank you all for joining us see you later. so, if you're just joining us, yeah, look at that, it was even higher than that earlier. the dow up 387 points at the peak today yes, we're above 24,000 for the first time ever. as tax reform hopes boost this market to new highs, we're going to talk to veteran republican senator chuck grassley about the timeline for this bill and what changes could still happen and up next, energy stocks

surging today as opec wraps up its meeting in vienna. we'll head there for the latest on what it means for oil and energy prices going forward. and we want to hear from you, reach out to the show, tell us what you think on twitter, facebook, or over e-mail you're watching cnbc, first in business worldwide what if we could keep more amof what we earn?d. trillions of dollars going back to taxpayers. who could possibly be against that? well, the national debt is $20 trillion. as we keep adding to it, guess who pays the bill? him. and her. and her. congress, we should grow the economy.

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santa's here ringing his bells. it's going to be a festive afternoon at the new york stock exchange with the tree lighting later to come. meantime, christmas themes on wall street, too. real estate, at least, is in the red. that gives us a bit of a mixed picture today leading the way in terms of the centers of the s&p which you see there is energy up 1.4% industrials right behind it. interestingly enough, you know, financials kind of just -- they're in there, but they're not -- they're only up half a percent right now. >> santa's up there waving with the rockettes. how are you, santa good to see you. >> ho, ho, ho. the nasdaq rallying today after having its worst day since august yesterday let's get to bertha coombs with a look at stocks driving this big rebound, bertha.

>> one of the big winners in this rotation this week have been the small caps. russell 2000 on pace to be the second best index. best performer this month behind the dow jones industrial average. but even as we've seen people sort of sell out of tech because of the enthusiasm over the tax bill, large cap tech still driving nasdaq gains with amazon's record run this month, providing the biggest impact within that, chips have seen the biggest fall already down about 5% for the week and we're watching to see that could result in the first down month in the last five, but chips, bear in mind, are up 41% this year. so it's not surprising investors are literally cashing out their chips. but not all of the momentum we've seen this month has been about tax reform take a look at qualcomm. bucking the trend. down 21% for the year coming into november. after hostile bid for broadcom it is the best performer in the nasdaq 100 this one.

retailers among the others s seeing a reversal of fortune, costco up strong on same store sales numbers. ross stores also at an all-time high now up for the year having been negative. dollar tree rounding out that retail retail getting a bit of love here as people sort of thinking animal spirits might be loose. of course, we're in the holidays >> yeah, 8.4% u.s. comps for costco 8.4% >> right >> something else. thank you, bertha. >> see you later meanwhile, energy stocks have been trading higher today as well. opec leaders wrap up that needing in vie vienna. our steve sedgwick is live there vienna with the very latest. good evening, steve. >> reporter: good evening, to you, bill, good evening, kelly yeah, i'm pretty sure around about this time yesterday we were talking about whether they would go to the end of 2018 with a review some way through the year that's pretty what we've got they tweaked the language a little bit, gone for a full new 12-month bill rather than waiting for the next three

months of 2018 then extending 9 months after that as well. they've given a review at the half-year stage which downsides with a june 21st opec meeting. they seem really happy i spoke to qatar, saudi, iran, iraq, russia, nigeria, you name it, they're all really lets. lot of smiles around here. why wouldn't they be happy they think they're getting the job done let's listen in to what the saudi minister said to me earlier today about where they are in getting the job done. >> what's important to focus on as we go into 2018 is that we still have about 50% of our work to be done, so we're not complace complacent i am going into 2018 knowing we're only half done and we probably need all of 2018 to finish the job that we started. >> so in terms of where they go next, well, look, we know the russians were after a review the russians got their review. in fact, i had a very long

conversation, literally, about 45 minutes ago with the russian oil minister we're going to get all that sound out on cnbc later on and first thing tomorrow basically he was saying, look, i think all things being equal, that's hurricanes aside or shale growth aside, i think there's going to be a balancing in the market in the third quarter and of course if they think that, that june meeting could be absolutely key as well they're going for 1.8 million barrels a day they took off for the whole of 2017 that was pretty siuccessful for them, they're going to try to do the same and replicate that into 2018 i put it to mr. novak, about shale? look at the figures from the eia. 9.48 million barrels being produced in the united states as well he said, look, there are negatives but the positives for the russian economy, for all the other economies and the consumers more generally, policy of opec and non-opec, way outweighing the negatives coming i pushed them on this point, shale, of course, selling aggressively into markets such

as china, they think they can compete very aggressively on those markets. there's been a tweak within opec for a little of or more greekky oil watchers nigeria and libya, growing very, very strong volumes throughout 2017, they're going to accept a cap in 2018 at current level, combined 2.8 million barrels a day. the other key point, this is really fascinating, we talked about the relationship between saudi and russia, the relationship on political levels, geopolitical levels and of course here in vienienna as well the body language and the conversation between saudi arabia and mr. novak of russia was as strong as i've ever seen it really, seriously, in fact, they were saying, look, there is no light between us, despite what you pundits may have been saying, in fact, we are completely aligned and on the same page. i thought that was very interesting because i think a lot of market watchers have have been waiting and looking for cracks in that key relationship because, of course, in some parts of the middle east, they're on different sides of some of the conflicts there as

well what is also interesting, when i spoke to zangane who is the iranian oil minister, he was saying, look, i'm completely aligned with what's going on from saudi as well when you hear language from a senior iranian talking about being aligned with saudi arabia, i thought was a very interesting as well. in fact, he also made some very interesting comments about potential further sanctions from the u.s. and said, look, we welcome companies from the world, it's such a great shame the u.s. companies can't gt invol get involved in the billions of dollars of investment when other companies from other countries can. so many different dynamics as well the long and short of it, bill and kelly, we got the deal we expected despite the fact many were looking for cracks in there. i'm talking about cracks, but the spread between brent on notice last time i looked was 6,357. that's a big 6 bucks plus dimpb difference between the two and shows you the dynamic going on in the moment. yetthe global benchmark on

brent has been held up by deals like we saw today. back to you both in the studio. >> very good, steve, thank you thorough as always steve sedgwick joining us from vienna appreciate it. 40 minutes to go, little less right now dow up 281, about 100 points off the high if you can believe that today. still more moderate gains across the other averages. >> look at the russell could go negative. >> barely. it's been sort of fighting to get into positive terror potroi. nasdaq up 37 s&p up 17. still ahead, stocks taking off today after senator john mccain said he's onboard for the tax bill ahead, we'll speak exclusively with republican senator chuck grassley about what that final bill could look like and what the potential holdups are. >> do you realize he and orrin hatch i think are the only two senators who were around when they could vote for the reagan tax cuts in 1986, now here they are again. plus the dow and s&p wrapping up their eighth straight month of gains in a big way, but have retail investors been cashing in on this market rally yet? we're taking the retail pulse in our "closing bell" investment

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welcome back with the dow transports up 185 points, pretty nice session for them also hitting intraday all-time highs like we saw on the close yesterday. people like it watch it for dow theory. >> yes, they do. >> today that theory is working out quite nicely. >> here we are in the last trading day of the month. >> a big one for the markets to say the least. what better time than now to check in on main street investors? joining

julie werner, susan noise. thank you for joining us >> is i'm here. >> julie >> everybody hear us now we onboard >> julie, i'll begin with you, especially after this incredible run-up we've seen in the markets this year, what strategies are you undertaking as we head into december >> well, as an individual inv t investor who invests for the long term, i can't compete with the big boys, i'm more interested in the stocks that i own. as long as they're good solid quality companies, i coopkind oe them go. every once of in a while a few get undervalued. i took money off the table and recent ly a little bit more basically i'm letting my portfolio go. >> okay. susan, you're not selling anything yet, right? >> i haven't i'm waiting for this to see some sign that this up market is actually on its way back down before i sell anything >> so -- >> possibly ge

>> are you waiting for, what, well, yes. we could spend the whole time on ge are you waiting for a 10% pullback, 20%, i mean, what is that sign you're waiting to see that will tell you it's time to sell >> oh, you're asking, you know, i don't know what that is. when i see it, i'll know. >> you'll know when you see it okay. >> yeah. i'm an intuitive investor, i think. >> okay. >> julie, what are some of the stocks you've been buying rae reech recently we talked about names like tiffany you held for a long time does anything look attractive to you at prices at these levels? >> actually the last time i actually put a little bit of money to work was last january when i bought a little bit more of my abbott around $39. today, that's a little extended. and my newest stock that i added maybe about nine months ago was fox factory holdings, which is a neat little small company but here, again, you know, since i

bought it, it has really gone up quite a bit. so other than just adding to some of the stocks i own, you know, haven't really been doing very much buying, and not very much selling, just kind of letting my profits run >> and susan, on your -- your list that you call you have them and never let them go stocks, facebook, apple, amazon, microsoft, snnetflix, google, lily, disney no matter what, you're going to hang on to those is that the idea is. >> yeah, i'd have to see something really crash before i let those go i believe there the companies. i -- the one thing that i am putting more money into selectively is impact investing, in particular, so i bought into a great fund with morgan stanley, and i am looking for stocks that real -- whose values really align with mine. >> susan, i also see here, tell me i'm wrong in reading this, you're thinking about bitcoin? >> yes the last time i was on, i told you i was thinking about tesla

and you were surprised and i didn't buy it. and what a mistake that was. so i'm watching bitcoin right now. >> okay. go ahead don't let me stop you on bitcoin. >> yeah, and some people are saying it will go up to $100,000, some are saying it could crash, you know. i don't know enough, and i'm enough of a retail investor to need -- need to understand it better before i put a lot of hundr money behind it. >> best thing you've said -- >> i'll probably put a little behind it before the end of the year because what a mistake if i don't, right >> i can't maimagine, julie, wih your history of teaching investing and being involved with the investing clubs you would give somebody the advice of investing in bitcoin, would you? >> no, because i don't know how you value it the biggest mistake usually individual investors make is they may buy the best quality company but if they overpay for it, it's usually not a good investment over the short term so, no, i have no way of valuing

bitcoin, so, therefore, i will let some other people risk their money doing that >> good to see you both, thank you, susan, i'm worried about you. don't go near bitcoin. i'll just say that okay >> okay. i'll take that advice. thank you. >> okay. be careful >> tauhank you, julie. >> yep julie werner, susan noyes. time for a cnbc news update. let's get over to sue herera. >> ooers what's happening at this hour, everyone, fema director asking for additional funds as they grapple with a series of natural disasters. brock long making the request to a house committee. >> not only to harvey, irma, malma le maria, the california wildfires, we're working 31 disasters across this country in 21 jurisdictions. my staff is tapped out they work around the clock and bust their rear ends every day to help those who are in need. an historic bridge in tennessee is no longer standing.

crewss demolished the hoskins jargon bridge earlier this morning built in the 1940s, the size of its overpass caused problems for emergency vehicles. and a new postage stamp will raise money for alzheimer's research the postal service revealing the stamp hat johns hopkins medical center in baltimore. it features the profile of an older woman with a hand on her shoulder that's the news update this hour guys, i'll see you about an hour from now bill, back to you. kelly? >> sue, thank you very much. see you then. we've got about 29 minutes left if the trading session on what has been a powerful rally die for the blue chips dow up about 300 points right now. joining me right now is the chart master, carter worth and you're looking at, i mean, this has been a growth market here right? >> sure. i mean, what i thought would be interesting to look at is do you chase the cyclicals, right, because they have come to life, or do you take advantage of maybe some of the weakness in the growth names and really stick with them or if you were

underweight, get bigger? >> what are we looking at here 1234. >> i have two charts etfs that capture the themes pure growth etf out by guggenheim versus the pure value. what we know is essentially blue is growth, green is value. and the orange is the sby, itself. >> okay. >> two of the parts that compose the whole. what we know is basically growth has doubled the performance of value year to date what 350epeople are getting interested in, oosk of course, is this recent hook. >> value is catching up. >> value over the past three, four sessions, whereas growth is unchanged. the question is, for all portfolio managers o errs indivs do you say this is a time where this will catch up or actually, frankly, still not going to be able to keep up ultimately with growth that's my view i think growth is the better bet. we can look at a chart of the pure value etf, itself, i think question have that here, what we

know is that this is -- this is a fairly well-defined uptrend. when you get big moves off of trend, you know, typically, you know, you get also checkbacks, right? so that at some point, i think we'll get that point, rather than chasing this,you want to wait for some giveback or said differently, take advantage of the weakness in some of the growth names to put money to work. >> look at that. chart master and telestrator master as well >> thank you. >> thanks, carter, see you later. kelly? >> more on that very theme next hour. little less than half an hour to go the russell is trying to stay positive it's up just half a point. up next, as stocks surge on tax reform homes, we'll speak exclusively with republican senator chuck grassley about the latest on the bill and whether flu chges tantohe corporate tax rate are in the works when we come right back.

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has been a strong day in large part, i guess, because of the euphoria over the tax bill >> senator john mccain said he will support it, and in a cnbc exclusive, we are now joined by republican senator chuck grassley from iowa he is also a member of the senate finance committee senator, thank you for your time. >> thank you, senator. >> thank you, kelly. >> i mean, it's interesting that this rally is being attributed to senator mccain's support for this bill. do you think at this point you guys do have the votes to pass it >> not only the good news today, but i have had a good feeling the last two weeks on this because there has been five or six people that had questions about various aspects of the bill, but i always felt that every one of them wanted to get to yes on the bill they had little something, big or little here that needed to be fixed and there, and there's been trying to accommodate not only members that were holding out, but even some of us members

that have supported the bill for a long period of time. there's some things we want changed and they're trying to accommodate all that and that gets us to 52, i believe. >> well let's talk about a few of those senators that had problems senator corker was one, he was worried about the deficit. now you're talking about these triggers that are troubling some of the senators out there that if the economy doesn't grow fast enough, maybe you have to trigger some spending g ining c the deficit doesn't balloon. if the economy grows too fast or grows faster than you think, then maybe you could see some tax cuts extending beyond that i mean, are you in favor of some of these sort of after the burner triggers here >> not really, but let me explain. if they are going to be in the final bill, i have to look at it this way no one of the 52 senators can have everything their own way. and i was back in the senate in 1986, the last time we did this

31 years ago, and in the last 30 years, we have made the tax code so complex, none of us have the liberty once in a generation of getting everything we want we have to simplify the tax code we have to get middle income tax cuts we have to make our corporations globally competitive >> senator, another concern that we're hearing, and we can show you one example from a viewer today, he said why is the senate denying to individuals the same benefits of tax selling that institutions will get? this is a reference as you probably are aware of forcing people when they sell their stocks to do it on the first in/first out method, means they have a higher capital gains that they would have to pay is this something that is important to you that you make people do this or can you come to some agreement where they won't be forced to do that change? >> oh, we will be able to come to an agreement, but don't forget, one of the benefits of the business tax cut and the

incentives for investment and the predictability of investment is to encourage long-term investment >> oh, for sure. and, i mean, i think that's why people are saying, look, we want to be incentivized by the way, to your point about the fairness of the whole bill, the perception in surveys time and again out there is this is going to help corporate america and not going to help the middle class immediately, certainly in this area and in california, there's a lot of concern about the spending hit people could take because their taxes are going up on the state and local deduction as i'm sure you're aware. so what about the idea of bringing that corporate tax rate up to 22% or 23% in order to make all these other concern we're talking about go away? >> well, i'm going to give you an answer pleading my colleagues, that there's all sorts of good ideas out there and that's an idea that ought to be considered, but if we're

going to start breaking up into small groups the 52 of us that are going to take to get this tax change, the first one in 31 years passed, we better not get that specific about finding something wrong with the bill. we have to work together as a group, or it's not going to get done >> let me bring up another one, aarp in fact, susan collins has expressed this concern as well about cuts to medicare that could happen if the pay go provisions were to kick in because of the ballooning of the deficit here it gets complicated but you know what i'm talking about senator mcconnell has told susan collins that they won't allow that to happen, but in order for that not to happen, you dmeneed senators to vote to make sure you don't have the pay go provisions kick in if the deficit does balloon so what can you say about the possibility of medicare cuts as

a result of this tax bill? >> well, you're talking about something that would probably happen after 2025, and all i can tell you is that the leasest the economy has to grow to make sure that doesn't happen is 4/1 of 1% increase in the gdp and if you go back to the 50 years before0f 1% increase in the gdp and if you go back to the 50 years before obama, the economy grow at 3% to 3.5% and the worst decade was 2.6% between the '70s and the '80s and only grew 1.4% for eight years under obama. it seems to me it's a no brainer that that cannot possibly happen in a country based on the free market system. >> do you think that's the kind of explanation that will bring susan collins onboard?

>> i think she legitimately has concerns just because like iowa, where i come from, we have a high percentage of our people are elderly. she has the same thing in maine. and that does concern me, but i have not lost faith in the free market system we have and the entrepreneurship of american people that this economy is going to grow more than 4/10 of 1% >> senator, so just to go back to this point, the white house has made their intentions at least in the past very clear, they want a 20% corporate tax rate is it okay if that rate is 22% or 23% as far as you're concerned >> yes, it is, because right now, england's going to 17%, ireland's at 12%, and the rest of the industrial world has an average of 22% if we were at that average, we'd be a heck of a lot better off than we where now at 35%, but we're going to be more

competitive at 20% and it isn't just a case of corporation taxes. it's the increased jobs and the increased income that comes to the workers as a result of reducing the corporate tax rate because 25% of the corporate taxes, minimum of 25% of corporate taxes, comes out of wages and so we're able to increase the wages of the -- of the american worker. >> senator, if you can stay right there, we want you to hear this, some analysis of the senate bill is just coming out right now. our ylan mui has that for us i want to get senator grassley respon response. >> reporter: the joint committee on taxation is out with their anap dynamic estimate they're estimating the senate plan would raise over a decade $407 billion in additional revenue, and that translates into about .8% additional growth

over the course of ten years now, this does appear to be lower than what senate republicans were hoping for. they were hoping the plan would essentially pay for itself, but the jct score seems to indicate that it will fall short. back over to you guys. >> all right, ylan, thank you. and, you know, this has been a hallmark, senator, of the argument for the bill, is that growth will pay for the deficit and offset that, but can that happen if the joint committee on taxation is correct, and the growth estimates they have for the next ten years >> yeah, well, listen, in washington, d.c., generally, but particularly in the congressional budget office and only recently there the committee on joint tax, there's been a bureaucratic opposition to considering anything in a dynamic scoring area so i think you're going to see them to be very, very conservative because of that long-term opposition to doing

dynamic scoring, and i think it just proves to me that we're going to do a lot better because of their bureaucratic resist answer to dynamic scoring. >> all right senator, always good to see you. thank you for your time, sir. >> thank you so much. >> chuck grassley of iowa joining us today about 14 minutes to go and, aga again, if you look at the dow up 295, mccain's support is being cited as one reason but we know there's been differentiation across these averages today and the impact is playing out very differently. hca one of the best performers in part because jp morgan -- >> up strong, too, with the possibility of cvs merger. >> that's right. that, too. >> there's that coming as well. coming up, we're going to lkbo h mta autowuch longer this rally can last can't wait to hear that.

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listens to this, art cashin stopped by and said the markets on close orders, ready, bias to the buy side of $3 billion he double checked it he said he couldn't believe it, himself. >> if it's true, would push us

higher 50 to 70 points the market upjumpupjumped 40 po. >> i think it's kicking in >> yes we'll see if any more kicks in even the russell is suddenly up .25%. it was struggling to stay positive a minute ago. seven minutes to go before the close. can the momentum continue into year end >> joining us, we've got chuck grom from gordon haskett and ian, i know you've been kind of cautious on this market, what do you make of this here? >> well, i mean, it completely makes sense what's going on. you have absolutely no supply in the marketplace, because everybody's expecting this big tax reform and you have a bunch of yield chasing and there's no alternative so people are pouring into stocks because they can't get yield anywhere else. it makes sen what s sense maswg >> one day we're talking about

tech flonothing trks technology it's had a good year does that impress you? what does that tell you about the nature of the incredible rally we've seen this year >> from my specter in retail, i think we've seen some really strong numbers out of the consumer as you guys all know, consumer spending is two-thirds of gdp and the strength is really broad based. we've seen it at walmart, we've seen it at costco, wayfair pbh last night saying good things about the department store. from what i look at, the consumer seems extremely healththy right now and it's in a very important time of year coming off black friday weekend and the head of the holiday season here. >> you think retail is going to be that strong, the sales overall for the holiday are going to be that strong? is that what the stocks are trying to tell us here they had an incredible wethis week. >> black friday was tremendous you're going to see a lull over the next couple weeks but wow have consumer confidence at close to 17-year highs, unemployment at close to

ten-year lows. the consumer seems really optimistic right now there's no reason to think with these tax cuts coming, likely the most impact, the low to middle income customer, you know, consumers seem strong here we think tiin will be healthy it the end of the year. >> ian, for me, for anybody who's skeptical about the market, it feels like if you just say costco put up an 8.4% u.s. comp, what more do you almost need to know? doesn't tell you there's some fundamental strength in the economy? >> i don't know, yes, there's fundamental strength the question is, what's it worth? as far as the u.s. consumer, you know, look at consumer debt, all-time highs so, yeah, i'm not really sure how strong the consumer is, and all this tax reform, you had chuck grassley on here talking about just trust us on dynamic scoring. these guys should be ashamed of themselves >> all right, gentlemen, thank you. got to run to get ready for the close. chuck, ian, thank you both for joining us on a azcry day for the markets.

we'll have the closing countdown coming up in just a moment stay tuned

let'sfist word that comes to mind when you think of low-cost futures trading. was it happy? what about a dedicated service team with futures licensed specialists? and what about being able to react to the 24-hour futures market with integrated trading across web and mobile? still happy? good. then it's time for power e-trade. the platform, price and service that gives you the edge you need. e-trade. the original place to invest online. about 90 seconds left as we close out the month in a big way. bob pisani is joining me here. we have chart of the dow for this month, and the biggest gain here, you're going to see it right at the end there. >> there it is. >> that's today and this week really >> i want to put up if we can

the s&p on an intraday basis people who argue tax cuts don't really matter ought to look at the charts a little more carefully. at 10:55, john mccain was announcing he was supporting the tax cut, the tax bill we saw the s&p move 15 points on that >> this is the russell i just want to make the point, it lagged forever and it's finally playing catchup. there's the s&p today. >> it was up moving sideways going into 10:50 we have a chart with a circle around it. it mattered. okay there is a premium in the market for tax cuts, the question is, how big is that premium, and is there any more of it left? that's part of the big debate. after that, do you sell on the news suppose you get the tax cuts through, do you sell on the news or not that's what people are debating. the bulls are saying, wait a minute, global economic expansion is really what matters, historic earnings are what matters that could continue. and the market may continue its rally. others are saying, forget it if we don't get big, big moves up

economically, and we don't get a friendly fed, the market's going to be in trouble >> all right well, what do you know, a day like today, we got santa claus ringing the closing bell as they get ready to light the new york stock exchange christmas tree you'll see that live next hour on a day when we set all-time records for the major averages with a big rally stay tuned for the second hour now the "closing bell" with kelly evans and company. see you later, kell. thank you, bill. welcome to the "closing bell," everybody, i'm kelly evans a very festive day at the new york stock exchange. all the more so given the gains we see on wall street. dow up 320 points on the close, best day since march 1st we were up 378 87 at the highs s afternoon. huge rally today the s&p adding 21 points to

2,647. the dow's closing level, by the way, over 24,000 for the first time it's the fifth time this year the dow has crossed 1,000 threshold and we've never seen that before. we crossed two in the year, we've never crossed more than two. we just crossed five on the close here as i mentioned, 24,263 for the dow. 2,647 for the s&p. the nasdaq up to 6,873 on the bell the russell 2000 the laggard up two points today still managing to close higher up at 1,544. a lot of records set here on the final day of the trading month in november. and the month in general it's another busy hour for earnings we've got results coming our way from ulta beauty, vm wear, 5 below, ambarella markets closing above 24,000, thomas farley will join me later on this hour with his take on the stock moves this year. what a year it has been. joining me now, cnbc senior markets commentator michael s santo

santoli, stephanie link from tiaa investments and paul hickey from bespoke leading the dow, utx, united technologies laggard, ge, still couldn't manage to close positive in the s&p, elle brands a big winner there and juniper networks lagging "l" brands up about 6% and juniper down about 6%. the rally went into overdrive when senator john mccain announced his support for the senate tax reform plan this morning. mccain saying, "i believe this legislation, though far from perfect, would enhance american competitiveness, boost the economy, and provide long overdue tax relief for middle class families." michael l, what do you think of it all >> look, it's definitely impressive we were able to tack on at the all-time highs i think the dow is what catches the eye and it maybe is going to overstay just exactly how furious the rally was today. it was more balanced, almost all the up days have been balanced in other words, by balanced i mean plenty of stocks are down today. russell 2000 barely above flat to me it wasn't about precisely

pricing in the end effects of a tax cut but the fact this tax cut is going to probably move ahead and helping the mood it's just a glut of good news the market has been ingesting for a while now. >> stephanie, what do you think. >> a lot of it was tax, for sure, you also got through opec without major surprises and a couple companies in the consumer world with really good earnings, costco, "l" brands the earnings parade continues to be very strong so if you do get tax and see an additional $10 a share, something like that, for the next year added on, sure, we're starting to price it in. it's obviously a positive and a nice tailwind. i would note, again, the shift you're seeing a major shift rotation even technology did not have a great bounce today that was not impressive as well. it was really financials, industrials, energy, utilities, telecom, that kind of thing. >> is that a temporary thing mike, you were making the comparison to march 1st. we've seen these kind of herky-jerky moves like that

before. >> the biggest one-day gain for the dow since march. march 1st was kind of the culmination of the first quarter trump trade rally. people got very excited that one day and it wasn't as if it was the end of the good times. two months after that, the market traded down to sideways and the leading sectors turned over and became the laggards so i do think as steph says we're seeing this rotation the past couple of days. this type of large into small, growth into value, rotation, happened in june happened in september. seems to be happening again now as people reshuffle. >> and paul , what do you make o it as you look at the fact we hit above 24,000 in the trading session, closed above 24,000 today, i don't think -- i don't know if it's the fastest we've ever done. 35 trading days is the fastest we've ever gone from 1,000 mark to the next. given that we close at 23k on october 18th, this was pretty close. what do you make of it >> yeah, it's a rally that would make bitcoin proud six thousand-point threshold

crosses since the election five this year throughout this rally this year, what we've constantly heard, what happens if tax reform doesn't go through i think to what stephanie was saying before is key, the market's starting to price it in throughout all this year, the market hasn't been rallying on tax -- on hopes of tax reform, and that's ef devident by the ft the high tax stocks haven't outperformed on tuesday they had their best day of the year as a group, and i think that helps to explain also why, you know, part of the rally in retail. they're among the highest tax paying companies, so any tax reform is going to hit their bottom line the most so i think it's a combination of things, but i think right now is a number we can finally start saying the market is pricing in tax reform, so going forward if we do see any bumps in the road, that could spell trouble for the market unlike in the past when we said what if tax reform doesn't happen -- >> and shrugged it off. >> -- or stumbled and the -- >> carl icahn was on the

"halftime report" earlier toe. here's what he sad had to abouti market. >> i thought trump was really going to change the landscape and he certainly has gone forward to do that i'm not that involved with washington, as you know, but i am, i have t euphoria even though earnings are going to be very good, and what have you, i just think this thing ha. >> this is the guy who bought the futures. so he says. >> so he says. maybe he did i do think he's also been a little bit cautious for a while. he was really worried in late 2015 we were having a high yield bond meltdown. so i do think he's kind of a value guy. his orientation is when there's blood in the streets, toii want be the one there. >> exactly. >> to be with the -- so i don't

think necessarily it's surprising that he feels like we're getting a little bit carried away this market doesn't owe anybody anything at this point but bull markets usually give you more than you deserve. >> is i actually thought he would have been more yeuphoric, himself, he's a value guy. that's the one thing you can say about this market, said it all year long, you've seen rotation every single day practically and it's been growth to value, value to growth, small caps, large caps, international, domestic so that's what's kind of keeps us afloat here, if you will, because you're seeing this rotation and new leadership leading. i think that's okay until it's not. >> paul, real quickly, i know you guys try to gauge whether we're entering euphoria territory. do you agree with carl icahn >> no. the market it taking on doubters, no smart onhortage of. today stocks in the s&p 500 hit a 52-week high, the strongest reading since the first half the participation of new highs

has been sort of lagging for the last fur months so this was a step in the right direction. when you look at prior years where you've seen this type of trading pattern heading in the first 11 months of the year, year typically ends off on a strong note with little, you know, small to minor declines if you have any >> all right all 11 s&p 500 sectors were higher today tech was not at the bottom of the pack, it's not leading, either as we were just saying, it was industrials, energy, financials. i think goldman the best performer in the dow today what rotation would you guys shay is happsa is happening here then >> money is flowing into the neglected parts of the market, the ones that have not been as exten extended >> it's up 500 points in two days >> i can tell you there are strong numbers which there have been, people are enthusiastic, maybe newly so about airlines. it's the kind of stock that hasn't been quite as stretched in the last couple of months money's finding its way into cyclical parts of the market.

>> it's the laggards, the laggards across the board because the transports -- rails haven't done anything in a couple months, right they've really taken off how about fedex and u.p.s. those things are on fire yet they also, too, lagged i get energy, why that's starting to see a little bit of a -- >> do you think that's opec related? >> i think a little bit is opec. i think if you're looking for the reversion into the laggards, certainly they hit the bill for sure of course, financials, you get a couple of different -- >> although they're not tax cut winners, energy. >> energy. >> not really across the board. >> not really. i don't think they need much. >> right. >> they really don't we'll see what happens with the oil price. but clearly they're acting better and that's encouraging. you want to see the whole market participate at certain times and when the value trade is working, you do want energy to be working. you don't want it to go against you. we'll see if it continues. >> let's talk retail for a second because we've had some big moves there for the last couple of days names that were higher today, costco, the big standout, it was up 4%. all-time highs we mentioned 8% comps, 8.4% in the u.s. for november.

that number, to me, is pretty extraordinary. >> yeah. >> and it's not the only part of retail that's all of a sudden found a head of steam about it so is this part of what you guys were just describing >> i think so. i mean, i think it's actually good news being good news. look, all the ingredients are there for a kind of a consumer spending push, where there's enough to go around for a lot of the good players but also costco in particular being able to kind of nail this number is impressive. >> this stock got hammered on amazon. >> yes. >> it was kind of like the teflon stock, could go against amazon, all of a sudden it didn't. >> down 6%. >> it fell, like, 20% from its high and so it's now -- it got derated. now it's re-rating back. people are saying, guess what, it's a good concept, people are going there, they have membership fees. it's not a broken story. >> amazon's copied it membership fees. >> that's right. >> very low margins. paul, what would you say about retail and other sector winners here >> you know, i think it's more the sector was so washed out, it's a rotation plan i mean, the consumer is feeling

good so that's a positive there. i think these rotations tend to last a few days. tair it n they're not one-day events like yesterday we saw tends to last a few days down the road, two, three months from now, it will be back to the same old winners we were looking at in june, everyone was worried about the tech stocks. that was quickly forgotten about. >> seems like ancient history at this point. speak of retail, we have san earnings report. courtney reagan has numbers for us. >> take a look at shares of ulta beauty, shares sharply lower after the bell u ulta did beat on earnings by 3 cent comp sales up 10.3%. that sounds really strong but remember, we've seen numbers that were even stronge eer for m time for ulta. earnings guidance for the fourth quarter, that's pretty light and that's what's driving the stock lower here i should also note e-commerce added 370 points 370 basis points to that comp total. so that's a breakout that we like to look at in retail.

how much e-commerce is contributing versus the stores and you can see here shares down almost 6% for ulta beauty. we also have results from 5 below, beating earnings by 5 cents. revenues also beating those comps. almost twice as strong as expected coming in up 8.5% the street was just looking for those to be up 4.4%. you can see shares of 5 below are higher by more than 34% after hours. kelly, back over to you. >> courtney, what did you say the comp was for five below? >> five below comp 8.5%. >> wow. >> analysts were looking for that to increase 4.4%. >> remember when we were talking about fidget spinners, five below? i don't think we heard a lot about the fidget spinners lately, courtney. >> question have not five below is one of the retailers that the continues to expand and add stores. they're still not to that mature phase where they're looking at maybe an oversized fleet they're adding stores, too remember the comp number doesn't take that into account that stores have been open at least a year. >> true. >> that's a really, really

strong number. also good place for stocking stuffers if you think about it with all the smaller items of course, christmas is an important time of year for everyone, five below especially so >> yeah, great point courtney, thank you. ulta down 6% >> so sort of interesting because estee lauder had such a good number, right so it goes back to that theme of you want to own product, right you want to own the manufacturers. you don't want to own the distributors this one was kind of interesting to me, the setup, because the stock is down 13% year to date. >> is that all feels like more. >> it bounced. >> it bounced. right. it's bounced, but it's down 13%. the multiple went from 34 times to 21 times forward. so you had a derating there. i just thought the jetup wsetup better clearly they're having issues e and speaks to margins. the quarter, poor quality, tax, buybacks, really a disappointment. >> courtney mentioned the fourth quarter guidance was light upper end of the guide below the street consensus at this point if you look at the commentary

going into the number, they're lapping very strong numbers in past years including getting people to sign up for rewards program and reportedly the rihannasephora is doing very well. >> paul, got a comment on the rihanna line >> ulta, the big theme earlier this year is it was amazon proof. a lot may be amazon proof, even a small chunk, if it isn't amazon proof for a high growth stock like that, if you just ding a little small part of its growth rate, that's going to really cause something like what's happened to ulta to happen. >> yeah. yeah still down a little more than 6% we'll keep an eye on it. let's get to chip maker ambarella's earnings aditi roy has that story >> the maker's share are spiking more than 4% at the moment did well on eps, beat by 8 cents. eps coming in at 75 cents versus analyst expectations of 67

cents. with revenue, it came in line with expectation there at $89.1 million versus what the street was looking for, $89 million so pretty much in line with expectations and on the q4 revenue guide, basically in line as well, $68 million to $72 million versus analyst expe expectations of $70 million. the company has had challenges lately with some of their biggest clients like gopro and dji going with competitors for their chips, but, again, shares now up almost 4.5% now as they post a good beat on eps. they are betting big on new computer vision chips and we'll hear more about that on the call kelly, back to you >> steph >> apparently the computer vision chips certainly are having momentum, clearly stock trades at 5.5 time to sales, which is not cheap. up 35% year to date, but its peak was at eight times sales. scarcity value, machine learning products if they can convince the vc

produ -- >> it's not quite a faang yet, though, mike a long way to go. >> it's not going to displace amazon in faang. less than $2 billion market value. we think of it as a bellwether name. >> right. >> it's still one of the scrapfy guys trying to fight for it. >> paul, last word >> no interest there no interest in ambarella. >> we'll give you the last word on tech, then, because it's been sort of an odd one out in this incredential r incredible rally there this close today. >> yes i think that divergence we saw yesterday, historically, those things tend to maybe, you know, last a few days but, again, i think over time, three months from now, we'll be, you know, looking back and, you know, wondering what happened on that day. and we'll be from higher levels. >> we won't remember that day at all. paul, thank you. stephanie, thank you. >> thank you. >> appreciate it. >> paul, stephanie link joining us, to talk earnings and these markets. quite a day. the dow soaring more than 22% now this year. but value stocks as we were

mentioning have been significantly underperforming growth until lately. we're going to talk about whether value can fuel the next leg of this rally. plus transports soaring higher and helping lead today's huge rally we'll discuss why this group is suddenly taking off to some new highs. and we always want to hear from you, contact the show and share your thoughts with us via twitter, febk, oacoover e-mail you're watching cnbc, first in business worldwide is this a phone?

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welcome back the dow just closed above 24,000 for the first time and it cleared it by a margin the dow was up 331 points today. it's the fifth thousand-point milestone of the year. excuse me. thanks in large part to growth names. the growth etf is up 25% so far this year. but value stocks are showing signs of strength in recent days the value etf, the i-shares starting to edge out in growth in the last three months will value take the markets to the next milestone let's ask bill smid from smid capital management and barry james from james advantage funds. welcome to you both. bill, what do you think? you betting the house on value here >> i certainly wouldn't bet -- i wouldn't bet on milestones i don't think that's a good way to look at it. we're eight, nine years into a

bull market, and at the end of november, now, each year, what you've got is people have had momentum and big gains on stocks so they have virtually no interest in selling those until after the first of the year. and then amazon made a series of industries uninvestable by throwing scares in them for their lump of coal >> right. >> there are bargains galore in uninvestable areas in our view, there are two outcomes here, it would be like 2000-2002 where tech goes out of favor and money flows into the rest of the market because the economy is improving and that would be the real positive case, or we have a blowoff top to suck the individual investors in the next three to six months and then cream everybody and value should drastically outperform because if you own lower p/e stock, you get hurt a lot less on the downside when they unwind the momentum >> okay.

barry, what about you, i mean, is it true that if this rally goes on for a while longer, that growth will inevitably lead the way? >> is yes. that is true you know, i love the song "home on the range" and unfortunatel i got the discouraging word and cloudy skies we sent out a special study called topping market. because the fed change and excess optimism and other things of that nature and this long growth pattern, we do believe value is going to outperform, the market will probably have a correction but lest the other gentleman said, the 2000-2002 period, small cap value stocks went up when the overall market fell 37%. with y you can make money in smaller cap stocks under those types of circumstances. we're seeing the first vestiges of that since really the end of 2015 it's all been growth all the time, and we're just starting to see an edging of bargain stocks starting to outperform >> that's right. >> well, barry, bill, you can

weigh in on this, too, one difference between that period that was around 2000 is that back then, there was an abundance of demonstrably very cheap stocks it was essentially the entire market overvaluation was restricted to sort of half the market the other -- i don't think that's the case right now. the median p/e of stocks is higher where it was then and where does that leave you, barry? >> barry, what are your picks as you answer that? >> as far as i look at that, in terms of value wativaluations, schillers, that's as extended levels and price to sales, median price to sales on the s&p 500 is at a record level today that's another indication that things are overvalued in that sense. we also have what we call a mania in e-commerce, the faang stocks are up 500% in 5 years. that's not a normal advance in stocks and so if that crumbles as we've seen with the nikkei and the tech and biotech and other areas, when those bubbles burst, they tend to get hammered and it

ripples through typically the other stocks that are their neighbors. the ones that aren't their neighbors are these value bargain stocks good earnings but good valuations -- >> some examples macy's, barry? that's a name, you like macy >> that's exactly an example macy's is hated by everybody sometimes it's the best thing to buy. it has a yield higher than its price to earnings ratio yet it's not eating up all of itserin earnings to pay that dividend. >> okay. >> it's the fifth largest retailer in terms of e-commerce so it has that that part is growing there's some positives there and, again, the price has been so beaten down, it's really cheap. much less than its enterprise value. much less than the value even of its real estate. >> we're showing -- >> i'd like to pigpiggyback -- >> you like target rp, right, b? 12k3w4r >> a month ago, target's price to sales was the same at the end

of march of '09 when we thought we were going into a five-year depression mike, i don't agree with you on your assessment. you had john malone, most successful media investor of pretty much all-time on with david faber last friday in an extensive sbrinterview. if you listen to him carefully, he said unscripted television is a fire sale right now, so we like tegna, largest owner of tv affiliate stations, unscripted television dramatically less expense in unscripted than in scripted. amgen trades at 14 times earnings anybody that can walk and talk and chew gum in the large cap space trades at 20 to 25 you guys talk about costco cost costco dropped down to 25 times earnings, yes, they're doing well, but it's hard to make a lot of money at 15% return on equity paying 28 times earnings like you're paying today. >> all right. >> and then, so target, tegna,

amgen, buy things you'd buy fivi years ago. there's lot of them, actually, if you look at our portfolio, 7 or 8 out of our 28 stocks that look like that. >> great stuff people can go look that up bill, thanks for joining us, barry, too with some ideas for this market. up next, dom chu has some ideas of his own he's been digging to find out where investors are pouring their money today and show you where the most exuberance is in a moment. later new york stock exchange president tom farley daanhs in on the market move toy d much more. you're watching cnbc, first in business worldwide

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welcome back we have an earnings alert on vmwear now deirdre bosa, how'd they do? >> hey, kelly, the third quarter report coming in better than the street was expecting we got a big beat on the bottom line eps at $1.34 versus $1.27 expected a small revenue beat, $1.98 billion versus $1.96 billion that was forecast. its biggest services business need up $1.19 billion in the quarter in line with what the street was looking for last year it moved away from trying to build its own public cloud and competing with the big guys to actually partnering with them, instead, the big one was aws and reinvented this week, announced plans to expand its partnership with amazon that has served the company

well, made it easier for i.t. departments to use its products. it's up 50% year to date and a strong showing in the after hours, it's now up >> thank you, deirdre. feels like there's a lot of consolidation starting to happening. >> a tremendous amount of jockeying, partnerships, people trying to fill out their offering for now, they like vmware. it's got a big install base in all those relationships. >> it's up 3% right now on that report time now for a cnbc news update, let's get over to sue here herera. >> hello, kelly, hi, everybody here's what's happening at this hour john conyers' attorney says the congressman will not be pressured into resigning amid sexual harassment allegations. or fold re arnold reid saying despite nancy pelosi calling for his resignation, conyers alone will decide when it's time to step down. >> first of all, it's not up to nancy pelosi nancy pelosi did not elect the

congressman. and she sure as hell won't be the one to tell the congressman to leave that decision will be completely up to the congressman. americanairlines says only a few hundred of its late december flights remain without pilots. it said the pilots were picking up the extra flights and the airline has more on-call pilots in december than during other months so, so far, no flights have been canceled san francisco is planning on bringing surge pricing to every parking meter in the city in 2018 each of the city's 32,500 meters would be subject to hourly rates that vary depending on demand. for example, a neighborhood with a lot of restaurants might see higher rates during the evening hours than during the day. that's the news update kelly, back downtown to you. >> i'm avoiding san francisco. >> there you go. >> except during off hours because i'm there so much. anyway, thank you, sue. >> you got it. >> sue herera. let's take a quick look at how we finished on wall street,

dow up 331 points, by far the outperformer strong day at the close for other averages nasdaq up 49 russell managed a two-point gain a bunch of record closes there in general, the dow up 387 at one point today. let's get to some the other big stories today in our rapid recap. >> we do have dow 24k, dow surpassing 24,000 for the first time ever. went above 23k for the first time on october 18th >> john mccain becoming a yes. he was a crucial swing vote here for republicans and he put out a statement that said he doesn't think this is perfect legislation but he does believe it brings much-needed relief to american families. >> the white house not denying this report that appeared in "the new york times" earlier today that there's a plan here at the white house to replace rex tillerson as secretary of state with mike pompeo who is currently running the cia. >> this is the decoration of

corporation, what they decided sp wh is what we thought it would be, going from january now to december 2018. they're ripping up the last three months of this deal, replacing it with a brand new 12-month deal. >> with the tax break and with the way you have the emerging markets being so strong, i have to admit that there might be a very strong underpining to this market so in other words i think it's just run away, you know, it might have a big correction but i can't say it's the same. >> and mike, that story, "the new york times" story about rex tillerson potentially leaving the white house is one of these that it hit -- it has huge ramifications even in h terms of if pompeo takes over, senator cotton would take over for him, who would take over for the senator? it did not seem to grab wall street's attention today. >> it doesn't really penetrate the day-to-day on wall street. does seem as if investors are kind of, look, day kind of put this in the pile of things we kind of get, you know, it's not the most stable administration

there's a lot of personalities in and out it's been the case from day one. it's not necessarily something that bears on what the market is trying to price in today. >> i think that's a great point. where is all the money flowing the these days today's massive rally? dom chu, are hewhere he's findie etf exuberance >> the heat, the trading, all the volumes, the sector etfs, spdr ones. we took a look right after the closing bell things were still settling out these numbers are interesting. they now changed dramatically in just the last 15 minutes as trades have settled out. the three, etfs among the big spdr etfs that had the most activity relative to where they normally trade are these, the financial, tech and industrial etfs we looked at their 90-day trading volumes and then looked at what their trading volumes were today in relation to that to get an idea how much surge there was in trading volumes turni ins out for the spdr

financials it was more than double and now it's more than more than double 120%, 130% average daily volume over the last 90 days. the tech side of things, a huge surge, 135%. we have 71 here. it went up dramatically in the last few minutes industrials, 128% more than average 90-day trading volumes the one cause for maybe a little bit of caution that some traders are looking at right now is the s&p financials spdr. the xlf. that's the ticker that trades here the reason why, we saw a lot of trading volumes but did see the momentum weighing throughout the session. we're not to the lows so to speak. financials lost a lot of momentum if there's a place people are looking at for a little bit of a cautionary tale, might just be in the intraday trading are inin for the financial spdr that's one of the hot spots in the market, today's trade, guys. >> dom, it's not that we had the big rally, it's also as mike was pointing out, it's the last day of november. does that mean these flows are

indicative of where people might be going or leaving a wez head into the rest of the year? >> month end could be part of the whole story. there's a rotation at play, we've been talking about it for maybe a few days now this idea that some of the hot tech names have seen a selloff over the last couple days. perhaps even in financials have seen that pickup when we talk about the idea that markets are poised for the seasonally strong time of year, you wonder whether or not the action that we've seen on the downside over the last couple of days and then the upside today has really at least changed the dynamic for that santa claus rally, what's going to happen going forward. but, again, this is a seasonally strong time of year, but after a run after around 16%, 17%, 18% from major averages, you wonder whether or not the sector etfs tell a bit of a sign for what should be happening. >> we sal see. dom, thank you. an earnings report on zoumiez. >> earnings per share coming in line and revenues beating estimates of $246 million.

analysts were looking for $242 million. so for the quarter, comp sales were up 7.9% zumiez is one of the retailers that still gives us monthly updates. they're telling us also in the month of november their comp store sales were up 7.8% also when you look at the guidance, pretty strong for the coming quarter shares, though, are lower by about 8% the best we can do to explain this right now is if you look at the price action on the shares, up into this report, they were up 4.5% today. up 71% in the last 3 months. kelly? >> wow okay shocked that they're up that much yes, that's great context. zumiez down about 8% after hours. courtney, thank you. transports one of the big leaders in today's rally up next we'll break down what's driving those gains after underperforming the broader market this year. coming up nyse president tom farley will join us on this record-setting day to discuss market moves and we'll lhtig the christmas tree outside here at the new york stock exchange. zar: one of our investors was in his late 50s

right in the heart of the financial crisis, and saw his portfolio drop by double digits.

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who inspires and pushes us to go further than we could ever go alone. sofi. get there sooner. welcome back it wasn't just the dow industrials. the dow transports pushed to another record high today after huge gains yesterday phil lebeau is here with what's driving this lately. phil >> kelly, today it was the airlines but really across the board, all of the transports had

a big day today. as you take a look at what was really driving this subsector, if you will, for the dow components, and the dow overall, airlines were higher we'll talk more about that in a bit. the shippers have been on a roll for some time. we're expecting a strong holiday season that helped there. then you also have fuel costs that remain relatively speaking in check take a look at the airline index. and this is strictly looking at the airlines today had a nice move higher today now basically at a multi-month high not for the one-year high, but they're getting back to where they were earlier this year. americanairlines, one of the largest gains today. part of this is because the headlines yesterday were, boy, you have all these pilots who may not be scheduled for flights, we're going to have mass cancelations at christmas take a deep breath that's not going to be happening. think people saw really the true story going on here, that stock was up more than 2.5%. and then finally, the rails, b boy, they were rolling today whether it's kansas city southern, union pacific, norfolk

southern, they were all higher on a relatively strong day really a very strong day for the transports and that's what was moving the transports today. kelly? >> is and mike, what's your two cents on it? >> look, when the market is playing offense, when they want theexposure, the transports run pretty much what's happening also the rails, one example, high tax rate, they would be big beneficiaries mostly domestic. i think kind of lologistics, fo chain, shippers, they're running flat out and people think it's part of the stronger holiday season. >> economy good stuff phil lebeau joining us in from chicago. bitcoin also traded lower today after crossing into 11,000 mark yesterday one fed governor has a warning about the cryptocurrency in today's takeaway. on "ston," tfa mey aop technician says there's one name you want to buy. that's at 5:00

well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

welcome back it is time now for our "takeaway" today, we begin with procter & gamble trying to stop the bleeding at gillette by launching a lineup of razors with new blades that won't be more expensive than current products and introducing lower end razor options. nelson peltz railed on p&g i imagine he won't be happy with this the ceo told the "journal," quote, we decided to innovate not just on the super premium share, they lost to cheaper

startups like dollar shave club. >> seems like a concession to the realities of the market right now. i also wonder whether there isn't that much incremental innovation you can persuade customers about at the higher end. that trick worked for a long time. >> i thought the same thing. i read the article. i'm thinking after peltz making the point. there was one in the '90s, the mock 3 once p&g bought them in 2005, it's kind of been crickets maybe it's not self-evident if they had come out with something innovative. >> in which case you're making the case that it's pure marketing. which i think maybe nelson peltz would agree with, essentially you persuade people, it's a little bitter and worth paying for. men are really loyal to whatever iteration of the razor that they got comfortable with they don't upgrade all the time. >> you're still using one from -- >> three or four generations ago. next, warnings for bitcoin first, fed governor correls warned today its growing popularity could pose, quote,

serious financial stability issues then the irs saying if you've cashed out or paid for anything with your bitcoin this year, you have capital gains to report on form 1099 and taxes to pay on that the irs has actually gone to coinbase for user info in the past, michael, so it feels critical bitcoin holders actually know this. >> for sure. it's always been sort of risk factor in number one in terms of using bitcoin as an investment which is the government can decide to hem in on this unregulated area the irs issue is particularly interesting to me because, you know, this, of course, is going to create a disincentive to try and hide gains here somehow. >> well, the other thing, too, it's not clear, people go and buy something in bitcoin, i think they're going to get a form 1099. >> coindobase, we need the ledgers. >> right we want to know who these people were potentially huge issue if you bought bitcoin, it has a

huge capital appreciation, suddenly you owe tax on that, call your accountant, everybody. finally as we're about to light the tree outside of the new york stock exchange, a warning when you go get your own trees. apparently there's a shortage of christmas trees. they take ten years to grow six feet tall. ten years ago was the great recessi recession. apparently fewer trees were planted. now we're harvesting these results. >> of all the unan tes pate eti consequences of the financial crisis this is not one i would have foreseen. >> nor i. >> buy shorter trees because they're cheaper or much taller trees because they started growing in 2006. >> all i discovered is i should buy it at home depot instead of whole foods. you save so much you can probably get one twice as tall. >> and not the street corner outside my building in manhat n manhattan. >> probably not. >> that's where i get it, anyway. >> you don't care, if it's up 10%, you don't even know >> i carry it into the house. >> it's the most wonderful time of the year. coming up, we will head outside the new york stock exchange with nyse president tom farley to talk about this rally, about

bitcoin and to light the christmas tree you can barely see there. 'lbeig bk.wel rhtac

up next, kelly is heading outside the new york stock exchange to join nyse group approximated tom farley for the annual christmas tree lighting here at the exchange and to get rerdayke on today's co d on wall street we'll be right back with that. keyboard clacking ]

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hard to believe, christmas is just 25 days away now i'm outside the new york stock exchange with nyse group president tom farley, getting ready to light this big old christmas tree at broad and wall street you're in the wrong color for today, buddy the tie works, but let's talk it through. huge day in the markets as we stand out here getting ready to do this.

what do you make of what's been going on for the stock market? >> right color for the 94th tree lighting but not for the stock market we're seeing more positive economic results outside the u.s. than in the u.s there's a lot of optimism. we've seen a lot of ceos here at the stock exchange expressing optimism certainly 24,000, i don't think anybody expected it a year ago, here we are. >> carl icahn said today he thought it was some euphoria in the stock market i know you don't want that hanging over your head, a big bubble do we think we're anywhere near that territory >> i'm not a stock market prognosticator i'm an exchange operator we're here whether the markets are going up or going down so i truly don't have a feel but you do pick the brains of the great and good of industry and by and large, people feel like we're in a good spot economically >> so the real bubble is in bitcoin? >> i mean, i wouldn't -- all

these children who are behind me here, i wouldn't advise them to -- che >> cheer if you hold bitcoin [ cheering ] >> will you start trading bitcoin like your colleagues in chicago are doing? >> we were in early with an investment in a company called coin base. we're looking for appropriate commercial uses of it. there's still a lot of work to be done with blockchain and bitcoin to bring in institutional customers and industrialize it as a product with utility we're keeping a close eye on it. >> is it a business you think is worth getting into you have different companies now, cantor fitzgerald hosting trading on it. it's proprietary platforms this is where the excitement is. this is the topic everybody wants to talk about. it's a little bit of a scary one, though. how do you guys balance the risks versus the opportunity >> it's worth spending time on

for sure five years from now, do we look back and say, wow, it's revolutionized everything? it's unclear but we're absolutely spending time on it if there's one issue to look out for with bitcoin and crypto currencies it's how do you manage the risk. we will not dive into every product or busy. how do we manage the risk? it's volatile, it's gone up real fast, it could go down real fast >> do you mean when people say, great, they might be launching bitcoin futures but i don't want my company to be sucked into a situation where there's margin calls, even though we don't want anything to do with it >> that's great example of appropriate risk management. >> let's go back to the market and talk a little bit about the business this year >> one second. it's coming, i promise we're getting a "light the tree" chant back here. >> how is the business of the new york stock exchange doing? >> the business is great i said to my colleagues, in many

respects this is the best year ever from a listings pessimist s pre the ipos are coming here, all the tech ipos. we raised twice as much money, had twice as many ipos as last year it's going very well >> are you going to get saudi aramco >> we'll compete for any exciting idea. but i try not to blow it by talking about those ipos publicly >> the fact that the blue aprons of the world hasn't done so great, that's the not keeping people away? >> the ipo market is great this is awesome. >> the crowds behind me are chanting "light the tree." it's cold out here let's get right to it. >> are we ready to go? [ cheering ] >> i'm going to ask the man of the hour to come over and light the tree, give the officer a round of applause. [ applause ]

now, officer nash is going to light the tree but only when this group, every single one of you, including those sitting way up on the federal hall steps, counts down from ten all right? here we go ten, nine, eight, seven, six, five, four, three, two, one. [ cheers and applause >> good stuff, isn't it? ♪ thanks for being here, man good stuff, i love the "light the tree" chant. i'm talking about bitcoin wearing a red velvet suit. thank you. thank you. it's so fun. >> happy holidays. ♪

the tree wasn't the only thing lit today. the dow surging more than 300 points, cross that go key 24,000 level. the s&p and russell also closing at record highs. and it all began with hopes of tax reform as the senate seems to be on the fast track to passing its tax cut bill within the next 24 hours. in fact let's go right to washington, d.c. on capitol hill our ylan mui is standing by live with the very latest details ylan >> reporter: scott, the tax bill is gaining momentum in the senate it got a big boost when senator john mccain said that he will back the tax reform bill he put out a statement saying that even though this legislation is not perfect, he does believe it will provide relief to american families. however, in just about the past two hours or